UNCLASSIFIED - Asset Leadership Network€¦ · Feb 2004 – Executive Order 13327 – Federal Real Property Asset Mgmt. ... Pursue Proactive Infrastructure Investment 2. Implement

Warfighters Supporting Warfighters!

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Air Force Installation & Mission Support Center

USAF – Incremental Steps to Advanced Asset Management

with ISO 55000 Guidance

Mr. Russell WenigerAFIMSC/IZB23 Sep 2019Version 4.0


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The Air Force asset management journey

Air Force use of ISO 55000 Modernize installation management practices Shape installation investments.

Air Force benefits observed from ISO 55000 Realize value from assets Restore readiness to Air Force power projection platforms

Do/don’t do recommendations for large scale asset owners

Discussion

Agenda

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The Air Force’s Asset Management Journey

Feb 2004 – Executive Order 13327 – Federal Real Property Asset Mgmt. Set expectations: reform policies, promote efficient & economical use of assets

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Lots of places to get help! ISO IAM IPWEA/IIMM GFMAM ALN Many others!

Where do you begin?

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Defines a Management System for Managing Assets

Contains 175 shall statements for AMS Requirements

Not a “how to guide”

Three Standards ISO 55000 - Overview ISO 55001 - Requirements ISO 55002 - Guidelines

ISO Management System – High Level Structure Quality, Environmental Management, Facilities Management, Energy Management…

What is ISO 55000?

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Asset Management Fundamentals


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USAF Civil Engineering Asset Management System Maturity Assessment

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MasterPractitioner ApprenticeNovice

Maturity LevelsAir Force Average: 2.21

Leadership &Commitment

Objectives &Planning

USAF Self Assessment developed w/ small team perspective only

4. Context of the Organization4.1. Understanding the Organization and it’s Context4.2. Stakeholder needs and expectations4.3. Scope of the Asset Management System4.4. Asset Management System

5. Leadership5.1. Leadership and commitment5.2. Policy5.3. Organizational roles, responsibilities, and authorities

6. Planning6.1. Risks and Opportunities6.2. Objectives and planning to achieve them

7. Support7.1. Resources7.2. Competence7.3. Awareness7.4. Communication7.5. Information Requirements7.6. Documented Information

8. Operations8.1. Operational planning and control8.2. Management of change8.3. Outsourcing

9. Performance Evaluation9.1. Monitoring, measuring, analysis, and evaluation9.2. Internal Audit9.3. Management Review

10. Improvement10.1. Non-Conformity and corrective action10.2. Preventative Action10.3. Continual Improvement

ISO 55001 Management System Requirements

Competence &Awareness

Internal Audits &Management Reviews

Sheet1

ISO 55001 Management System Requirements

4. Context of the Organization

4.1. Understanding the Organization and it’s Context

4.2. Stakeholder needs and expectations

4.3. Scope of the Asset Management System

4.4. Asset Management System

5. Leadership

5.1. Leadership and commitment

5.2. Policy

5.3. Organizational roles, responsibilities, and authorities

6. Planning

6.1. Risks and Opportunities

6.2. Objectives and planning to achieve them

7. Support

7.1. Resources

7.2. Competence

7.3. Awareness

7.4. Communication

7.5. Information Requirements

7.6. Documented Information

8. Operations

8.1. Operational planning and control

8.2. Management of change

8.3. Outsourcing

9. Performance Evaluation

9.1. Monitoring, measuring, analysis, and evaluation

9.2. Internal Audit

9.3. Management Review

10. Improvement

10.1. Non-Conformity and corrective action

10.2. Preventative Action

10.3. Continual Improvement


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Key Assumptions: Assets fundamentally exist for a singular purpose To provide value and/or service to customers

People “do” Asset Management Good/Poor AM is reliant on people, their knowledge,

competence, motivation, and teamwork

Asset Management is Multi disciplinary Involves many parts of the organization, including

“Customers”, Leadership, Resources, Functionals

Asset Management means different things to different people End goals are often aligned

Asset Management is the coordinated activity of an organization to realize value from assets

Asset Management involves the balancing of

costsopportunities &risksdesired performance

to achieve organizational objectives

Source: ISO 55000

Modernizing Installation Mgmt PracticesWhat is Asset Management?

Asset Management is not a goal, it’s a System!8


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Managing Assets Asset ManagementFunctional Managers focus is on• Asset data, location and condition assessment• Current KPI’s• Department Budget

Functional Managers focus is on• Information supported decisions (strategic context

and related customer needs• Strategies to select and exploit assets over their

lifecycle to support mission aims• Collaboration across departments to optimize

resources allocated and activities

Stakeholders focus is on• Costs• Current performance• Response to failures/maintenance function

Stakeholders focus is on• Triple bottom line & value (=social, environmental,

and financial)• Clarity of purpose for the organization• Activities' Impact on organization’s objectives

Top Management focus is on • Short term gains/losses• Departmental/individual performance• Savings

Top Management focus is on • Long-term value for the organization• Developing competence and capability• Mission risks understood and mitigated

Suppliers focus is on• Short term contracts and performance• Service level agreements are focused on contract

specifications

Suppliers focus is on• Long-term contracts and/or partnering relationships

in support of client value and objectives• Understanding client strategy and needs in 5-10 yrs

Asset Management or Managing AssetsWhat’s the difference?

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Adapted from: ISO Technical Committee’s Managing Assets in the context of Asset Management, First Edition May 2017 Items in Red directly relate to I2S Imperatives


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Shaping Installation InvestmentsInfrastructure Investment Strategy (I2S)

Why is this important? The Air Force fights from our bases Backlog of deferred maintenance = $33B Key elements include:

• Targeted, data-driven repair and recap• 5% divestiture of failing infrastructure• Budget = 2% of Plant Replacement Value

(PRV)• Target = 2.3% of PRV • Leverages category management• Best practices in real property

management Represents “get well plan” to address

growing backlog Smarter and faster way to modernize

infrastructure

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Adequate, stable, long-term funding Programmed budget floor = 2% of Plant Replacement Value (PRV) Target is 2.3% to meet Line of Effort 1 and 2 while reducing the FSRM backlog

Smart infrastructure Investment Efforts Data-driven asset management 5-year Integrated Priority Lists (IPLs) and Construction Tasking Order (CTO)

Unity of Effort across the enterprise (HAF, MAJCOMs, AFIMSC, Bases all working toward same goals) Clear roles and responsibilities Common investment priorities Metrics that drive better outcomes

Revitalized Squadrons (diverse & capable workforce) Exceptional leaders in engineering and acquisition Updated engineering and acquisition manpower standards

Shaping Installation Investments I2S Imperatives

I2S Identified NEEDS:• Funds to make this work• Do smart things

• Get bang for the buck• Address divestment• Take advantage of best

practices

End-state: Adaptive, resilient, right-sized and fiscally sustainable infrastructure to assure combat readiness, lethality, and Airmen resilience. 11


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•LINE OF EFFORT 1•Restore Readiness to Power Projection Platforms

Shaping Installation Investments I2S Lines of Effort

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As of:

•LINE OF EFFORT 2•Cost Effective Modernization of Infrastructure

•LINE OF EFFORT 3•Drive Innovation in Installation Management

1. Ensure Airbase Resiliency2. Prioritize Repair of Mission-Critical Infrastructure3. Enhance Strategic Basing Posture4. Strengthen Installation Planning

1. Pursue Proactive Infrastructure Investment2. Implement Standard Designs3. Improve (Front-End) Acquisition and Programming

1. Employ Partnership and Third Party Finance2. Utilize Facilities Management Technologies3. Exploit Category Management4. Leverage New Authorities

Current State

Reduced Readiness

Degrading Infrastructure

Unsupportable infrastructure

LimitedCapacity

End State

Ready Power Projection Platforms

Sustainable Infrastructure

Resilient Infrastructure

Diversified/Agile Basing

Updated Capabilities with New Technology


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PowerPoint – SharePoint – Visualization – Predictive – CloudAuthoritative Data: ABIDES, SMS, E-Dash, PBES, etc Integration: EX: predictive APIs integrated into CERL SMS

Installation Health Assessment EvolutionPredictive, Data Driven Analytics

•Summer ‘16 – concept •Jan’17 - Dashboard •Fall ‘17 – data visualization

•Spring ‘18 – predictive analytics to CSAF •Fall ‘18 – Base-level analytics

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•How Does This Work? Accurate Inventory Condition Assessments Degradation Algorithms Simulates Investment Decisions Predictive Maint./Sustainment Predicts specific requirements

Condition Index (CI):

Each pixel represents a discreet facility

Color represents current condition index; scale 1-100

Each bar is associated with MAJCOM inventory

Mission Dependency Index (MDI) denoted spatially (Higher to left, lower to right)

Blue bars represent annual level of funding; dark blue = Recapitalization; light blue = lowest lifecycle

Red graph represents the change in deferred maintenance backlog growth

Infrastructure Data-Driven Analytics

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Installation Health Assessment (IHA)

Orange – $ MILCON Dark Blue – $ Restoration &

Modernization Light Blue - $ Sustainment

Note: All calculation use today’s $$, no inflation, no cost growth

Red – FSRM Backlog


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Status Quo (FY19 Funding Levels; 1.5% PRV; no divestment)

Modeled FY19 Funding Strategy (Status Quo)

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FY 50, Avg CI: 55.3 FY 19, Avg CI: 74.3

Backlog $90B


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Infrastructure Investment Strategy 2.0% PRV, 5% Divestment

Modeled I2S Implementation2% Investment w/ 5% Divestment

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FY 50, Avg CI: 77.9 FY 19, Avg CI: 74.3

Backlog $23B


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Backlog $11B

Infrastructure Investment Strategy 2.3% PRV, 5% Divestment

Modeled I2S Implementation2.3% Investment w/ 5% Divestment

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FY 50, Avg CI: 81.6 FY 19, Avg CI: 74.3


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Small Arms Firing Ranges Managing Assets Focus: Range condition and age Asset Management: Focus: (in addition to condition & age)

How many Airmen need training Are other economical training alternatives available

Air Force Dorms Managing Assets Focus: Dorm condition and age Asset Management: Focus: (in addition to condition & age)

Are dorms standards promoting Air Force principles? Is there adequate capacity to meet mission needs?

Child Development Centers (analysis is in early stages of development) Managing Assets Focus: CDC condition and age Asset Management: Focus: (in addition to condition & age)

Do we have the right capacity at the right locations? Are facilities functionally adequate ?

Managing Assets vs Asset ManagementExamples

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Requirements Throughput Range type Lanes req’d

Inventory/Condition Current venue Number of lanes Physical condition

Gap Analysis Does existing meet

needs? Health & safety issues?

Solution Throughput drives long-

term answer AF owned prioritized by

condition/capacity

Small Arms Firing RangesIt’s all about trained Airmen!

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Insight for Air Force ranges provided through Advanced analytics, optimizes decisions High throughput: AF owned ranges right answer Low throughput: alternate solutions possible Medium throughput: negotiated solution set


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Execution ReviewCondition Analysis

Analysis: Requirements vs Capacity

Air Force DormsPromoting Air Force Readiness

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Utilization

Inventory

Requirements PP & Student Throughput Qty per Room Configuration Issues

Inventory/Condition Room Count Utilization Facility Condition NEW: Health Risks?

Gap Analysis Adequate Capacity? Adequate Condition?

Solution (in development) Dorm Master Plan

execution – keep on track AF owned prioritized by

condition/capacity


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Do establish top-level policy & guidance to shape your direction

Do develop a Change Management Plan to implement your AMS Address all levels of the organization Don’t forget the guys that do the work in the trenches Address all components: Skills, Procedures, Structure, Strategy, Culture

Do plan out your AMS improvements ANY maturity model is better than no maturity model

Do leverage any & all data you have Quality is important, but some data is better than NO data Analytics will provide insight, even at a macro level

Don’t give up!

Do’s/Don’ts – Large Scale Asset Owners

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Slide Number 1Slide Number 2AgendaThe Air Force’s �Asset Management JourneyWhere do you begin?What is ISO 55000?USAF Civil Engineering �Asset Management System Maturity AssessmentModernizing Installation Mgmt Practices�What is Asset Management?Asset Management or Managing Assets�What’s the difference?Shaping Installation Investments�Infrastructure Investment Strategy (I2S)Shaping Installation Investments �I2S ImperativesShaping Installation Investments �I2S Lines of EffortInstallation Health Assessment Evolution�Predictive, Data Driven AnalyticsInfrastructure Data-Driven AnalyticsModeled FY19 Funding Strategy �(Status Quo)Modeled I2S Implementation�2% Investment w/ 5% DivestmentModeled I2S Implementation�2.3% Investment w/ 5% DivestmentManaging Assets vs Asset Management�ExamplesSmall Arms Firing Ranges�It’s all about trained Airmen!Air Force Dorms�Promoting Air Force ReadinessDo’s/Don’ts – Large Scale Asset OwnersSlide Number 22

Documents

UNCLASSIFIED - Asset Leadership Network€¦ · Feb 2004 – Executive Order 13327 – Federal Real Property Asset Mgmt. ... Pursue Proactive Infrastructure Investment 2. Implement